China Wind Power Reports Record Results for Third Quarter FY2011

TORONTO, Feb. 28 /CNW/ -- 
- Achieves first profitable quarter in Company's history; Announces
 increase in capacity for planned wind farm project to 800 MW -


TORONTO, Feb. 28 /CNW/ - China Wind Power International Corp. (TSX-V: CNW) today reported its financial results for the three- and
 nine-month periods ended December 31, 2010.  Q3 FY2011 marks the first
 profitable quarter for the Company since it began operations in August
 2009. The Company also reported that it plans to increase the capacity
 of its planned five phase wind farm development project to
 approximately 800 MW, up from its previously announced 546 MW. All
 amounts are in Canadian dollars unless otherwise indicated.


Selected Third Quarter Financial Highlights


 ____________________________________________________________________
|In thousands except share or % |Dec. 31, 2010| Dec. 31,2009 | Change|
|data                           |             |              |       |
|_______________________________|_____________|______________|_______|
|Total sales                    |       $2,430|        $1,288| +88.6%|
|_______________________________|_____________|______________|_______|
|Recorded revenue               |       $2,430|          $512|+$1,918|
|_______________________________|_____________|______________|_______|
|Adjusted EBITDA(1)             |       $1,898|          $450|+$1,448|
|_______________________________|_____________|______________|_______|
|Net earnings (loss)            |          $92|        ($626)|  +$719|
|_______________________________|_____________|______________|_______|
|Net earnings (loss) per share -|       $0.002|       ($0.01)|+$0.012|
|diluted(2)                     |             |              |       |
|_______________________________|_____________|______________|_______|
|                               |Dec. 31, 2010|March 31, 2010| Change|
|_______________________________|_____________|______________|_______|
|Cash and Cash equivalents      |       $1,365|          $373|  +$992|
|_______________________________|_____________|______________|_______|
|Total assets                   |     $134,102|      $114,185| +17.4%|
|_______________________________|_____________|______________|_______|
|Total liabilities              |      $83,158|       $71,075| +17.0%|
|_______________________________|_____________|______________|_______|




"We are very pleased with our  third quarter performance, which was
 consistent with our expectations," said Mr. Jun Liu, Chief Executive
 Officer, China Wind Power International Corp. "Our third quarter was
 marked by record results in each of our key financial metrics, capped
 most notably by the first profitable quarter in our Company's history. 
 Given our recent progress and momentum, we believe we are
 well-positioned to increase the capacity of our planned wind farm
 project in Du Mon County."


Q3 Highlights


    --  Generated more than 29 million KWh of electricity in Q3 for an
        aggregate production to date of 112 million KWh as of September
        30, 2010.
    --  Moving towards completion of Phase 2 construction, which is
        expected by the end of the second quarter of calendar 2011 and
        will generate a capacity of 49.5 MW of wind energy output.
    --  Achieved first quarter of profitability
    --  Secured first tranche consisting of 140,000,000 Yuan
        (approximately CDN$21.2 million) of a new 330,000,000 Yuan
        (approximately CDN$50 million) loan agreement signed with the
        Agricultural Development Bank of China.
    --  Closed a non-brokered private placement that generated gross
        proceeds of $4.3 million.



Highlights subsequent to Quarter-end


    --  Generated 6.1 million KWh of electricity in January, 2011,
        which is consistent with management's expectations given
        China's slower wind speeds during winter months.
    --  Secured an additional tranche consisting of 120,000,000 Yuan
        (approximately CDN$18 million) of the previously announced
        330,000,000 Yuan (approximately CDN$50 million) loan
        arrangement with the Agricultural Development Bank of China.
    --  Increased total planned capacity from 546 MW to 800 MW for all
        5 Phases.



Selected Year-to-Date 9-Month Financial Highlights


 _________________________________________________________________
|In thousands except share or % data    |  FY2011|  FY2010| Change|
|_______________________________________|________|________|_______|
|Total sales                            |  $4,853|  $2,622| +85.1%|
|_______________________________________|________|________|_______|
|Recorded revenue                       |  $4,853|    $512|+$4,341|
|_______________________________________|________|________|_______|
|Adjusted EBITDA                        |  $3,788|  ($333)|+$4,121|
|_______________________________________|________|________|_______|
|Net earnings (loss)                    |($1,882)|($3,755)|+$1,874|
|_______________________________________|________|________|_______|
|Net earnings (loss) per share - diluted| ($0.03)| ($0.10)| +$0.07|
|_______________________________________|________|________|_______|




Review of Third Quarter Financial Results


Total electricity sales for the third quarter of FY2011 were $2.4
 million, up 88.6% from $1.3 million for the corresponding period of
 FY2010. The growth is due to the completion of Phase 1 of the Company's
 wind energy projects and the resulting start of commercial energy
 production. Total sales for Q3 FY2011 were positively impacted by
 higher wind speed that is common in Du Mon County area, China during
 October and November. 


The increase in electricity product is attributable to a combination of
 factors, including higher wind speeds that are prevalent in China
 during the fall months as well as improved turbine performance
 resulting from the ongoing calibration and tuning of equipment.
 Subsequent to quarter end, the Company generated 6.1 million KWh of
 electricity in January.


Phase 1 is currently operating at an average of 85% capacity consistent
 with Management's expectation and previous guidance given ongoing
 calibration and tuning of turbines. It is expected that full production
 capacity for Phase 1 will be achieved by the end of March 2011.


Revenue for Q3 FY2011 was $2.4 million, up 374.5% from $0.5 million for
 the corresponding period of FY2010.  The growth is due to the
 completion of Phase 1 of the Company's wind energy projects and the
 resulting start of commercial energy production.


Adjusted EBITDA for Q3 FY2011 was $1.9 million, up from EBITDA of $0.5
 million for the corresponding of FY2010, representing an increase of
 $1.7 million.  The year-over-year improvement in adjusted EBITDA was
 due primarily to higher revenue as the Company continues its roll-out
 of its five-phased development plan.  


Net income for Q3 FY2011 was $0.09 million, or $0.002 per share fully
 diluted.  This compares to a net loss of $0.6 million, or $0.01 per
 share fully diluted, for Q3 FY2010.  The net gain versus the net loss
 was primarily attributable to the increase of revenue associated with
 the completion of Phase I of the Company's wind energy projects and the
 resulting start of commercial operations. 


At December 31, 2010, China Wind had cash totaling $1.4 million, total
 assets of $134.1 million and total liabilities of $83.2 million. These
 compare to $0.4 million, $114.2 million and $71.1 million, respectively
 at March 31, 2010. 


Outlook


"We are very encouraged by our recent financial and operational
 performance and the progress we have made towards the build out
 approximately 800 MW of our 5 Phases," added Mr. Liu.  "We are
 currently working towards completing construction and supply agreements
 with a major wind turbine manufacturer for Phase 3. Not only will it
 give us access to leading wind turbine technology with no upfront
 capital requirements, we also expect that it will provide us a clear
 path for the construction and commercialization of Phase 3 and its 198
 MW of capacity by the end of calendar 2012."


About China Wind Power International Corp. 


China Wind Power International Corp. is an Ontario company that is
 uniquely positioned to capitalize on the growing demand for wind power
 in China.  The Company indirectly holds the exclusive rights for wind
 energy development in Du Mon County, Heilongjiang Province, which has a
 demonstrated potential installed capacity of 1,150 MW of wind energy
 developable over an area of 612 square km.  While 1,150 MW represents
 the Company's long-term potential for wind power in the area, its
 current plans are for building out approximately 800 MW over five
 development phases.  The Company's common shares are listed on the TSX
 Venture Exchange under the symbol CNW. The Company has approximately
 63.9 million shares outstanding.


For more information and the latest updates on China Wind Power, visit
 our investor relations blog at http://chinawindpower.posterous.com or follow us on Twitter at http://twitter.com/ChinaWindPower


Forward-looking statements


Certain statements that are not historical facts made in this press
 release may be forward looking statements subject to risks and
 uncertainties. Statements containing words such as "will", "could",
 "expect", "may", "anticipate", "believe", "intend", "estimate", "plan"
 and other similar expressions are forward-looking statements that
 represent management's beliefs at the time the statements are made and
 are based on certain factors and assumptions including wind farm
 construction and commercial production schedule, output and capacity,
 revenue and earnings expectations and market potential. These
 forward-looking statements are subject to a variety of risks and
 uncertainties and other factors that could cause actual events to
 differ materially from those projected in forward-looking statements.
 Important factors that could cause actual results to differ materially
 from the Company's expectations include uncertainties involving the
 availability of financing; fluctuations in currency exchange rates;
 uncertainties relating to economic and market conditions; uncertainty
 of estimates of capital and operating costs;  the need to obtain
 additional financing to develop the projects and uncertainty as to the
 availability and terms of future financing; the possibility of delay in
 construction projects and uncertainty of meeting anticipated program
 milestones; uncertainty as to timely availability of permits and other
 governmental approvals; and other risks and uncertainties disclosed in
 the information circular dated November 5, 2010, which is available at
 www.sedar.com under the Company's profile. Except as required by
 applicable securities laws, the Company undertakes no obligation to
 update any forward looking statement to reflect events or circumstances
 after the date on which such statement is made.


Neither TSX Venture Exchange nor its Regulation Services Provider (as
 that term is defined in the policies of the TSX Venture Exchange)
 accepts responsibility for the adequacy or accuracy of this release.


(1)   Earnings before interest, taxes, depreciation and amortization
 (EBITDA) is often used as a measure of financial performance. However,
 EBITDA is not a term that has specific meaning in accordance with
 generally accepted accounting principles and may be calculated
 differently by other companies.   China Wind reconciles EBITDA to its
 net earnings (loss).  Adjusted EBITDA also excludes stock-based
 compensation.

(2)  China Wind Power's weighted average number of shares at December 31,
 2010 was 62,529,711 compared to 57,323,412 at December 31, 2009.



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table valign="top" border="0"tr valign="top"td align="left"Wendell Zhangbr/ Chief Financial Officerbr/ China Wind Power International Corp.br/ Tel: [phone]br/ Email: a href="mailto:[e-mail]"[e-mail]/a/td td align="left" /td td align="left" /td td align="left" /td td valign="top" align="left"Joe Racanellibr/ Investor Relationsbr/ TMX Equicom  br/ Tel: [phone] ext 243br/ Email: a href="mailto:[e-mail]"[e-mail]/a /td/tr/table

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